An Investor Owns 5,000 Shares,which Is 1% of a Corporation's

question 70

Multiple Choice

An investor owns 5,000 shares,which is 1% of a corporation's outstanding stock before a stock repurchase.The investor did not sell any of his stock during the 25,000 share repurchase.Which of the following statements is correct?

• A) The investor still owns 1% of the corporation.
• B) The stock's price is likely to drop by 5%.
• C) The investor owns more than 1% of the corporation.
• D) The investor now has 5,250 shares.

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Definitions:

Manager

An individual responsible for planning, directing, and overseeing the operations and fiscal health of a business unit, department, or organization.

Directs

To command, manage, or guide through instruction or command.

Responsible

Being responsible for performing certain actions or overseeing or looking after someone as a requirement of one's position or duty.

Blur

A lack of clarity or distinctness in an image, scenario, or situation, leading to confusion or ambiguity.